The goal of this report will be to bring awareness of the various economic costs of the Iraq War. The war which has continued for far longer than anyone expected has seen recent estimates of costs to accumulate to roughly a trillion dollars. That amount is staggering considering former director of the White House Economic Council Lawrence Lindsey stunned the Bush Administration in 2002 when Lindsey suggested the war would cost between $100 and $200 billion. The report will focus on the economic costs associated with the U.S. budget and how it is set aside for Department of Defense spending, the costs to Iraq and the environment, and the cost of human life loss and post-war lives of veterans. Our findings and research based on several previous reports contain some estimates and require several assumptions when we try to monetize the values of human life and other indirect costs related to the war.

1. Greg Young Aditya Mehta Eric Garcia 05/29/10 California Lutheran University: School of Business

5. Estimates in Percentage change per year. Source: CRS report for Congress, updated February 8 th 2008 05/29/10 California Lutheran University: School of Business

15. 05/29/10 California Lutheran University: School of Business

17. 05/29/10 California Lutheran University: School of Business Budgetary and Social Economic Costs Total Operations to Day $646 $646 (Spent to date) Future Operations $521 $913 (Future Operations only) Future Veterans' Costs $422 $717 (Hidden Medical+ Veterans Disability + Veterans Sosical Security) Other Military Costs/Adjustments $132 $404 (Hidden Defence + Future Defence reset + Demobilization, less no-fly-zone savings) Total Budgetary Costs $1,721 $2,680 Social Costs Total $295 $415 Total Budgetary and Social Costs $2,016 $3,095 Total Budetary, social, and $2,203 $4,995 Macroeconomic Costs (Without Interest) Interest costs $613 $816 Total ( With Interest) $2,816 $5,811

24. © 2008 Organization of the Petroleum Exporting Countries A significant proportion of the increase in the price of oil resulted from the war 05/29/10 California Lutheran University: School of Business Yearly Basket Price 1995 16.86 1996 20.29 1997 18.68 1998 12.28 1999 17.48 2000 27.6 2001 23.12 2002 24.36 2003 28.1 2004 36.05 2005 50.64 2006 61.08 2007 69.08 2008 92.15

29. 05/29/10 California Lutheran University: School of Business Cost in Billions Best Case Realistic- Moderate Macroeconomic Costs Oil Price Impact $187 $800 Budgetary Impact $0 $1,100 Subtotal Macro Economic Costs $187 $1,900